What you're not hearing about... BBB RIP

Monday, December 20, 2021
Donald L. Luskin

Manchin pulls the plug on budget chicanery, and the White House accuses him of duplicity.

Update to Strategic View

Manchin announced Sunday that he cannot vote for the Build Back Better Act, dooming it in the 50-50 Senate. No stimulus. No tax hikes. He calls out the deceptiveness of spending provisions in the bill scheduled to sunset, when in reality they would surely be extended. He points to a CBO study showing that the bill, when scored to reflect the likely permanence of these provisions, increases the debt by $3 trillion. Shedding spending provisions to fit Manchin's budgetary limits, honestly scored, is likely impossible. An angry White House response accuses Manchin of duplicity. Anything is possible in Washington, but it seems as though all bridges to compromise have been burned. As we predicted more than nine months ago, BBB is dead.